Madhya Pradesh first state to invest in defence manufacturing units
BHOPAL: Madhya Pradesh has become the first state to
formulate defence products investment policy in the country. The Central
Government has prepared guidelines for public undertakings to set up joint
ventures for defence manufacturing units with private sector.
According to sources, in view of strong possibilities
of investment in defence sector, the state government has formulated investment
policy for defence products to investors investing Rs 500-crore or more in these
Under the policy, land will be allotted on priority to
such units. Concerning collector will provide up to 50 acre undeveloped
government land at the rate of 25 per cent price of unirrigated agriculture
land on collector guideline rate. Concession of 75 per cent will be given in
current lease rent.
Besides, vendor units of defence manufacturing plants
will be allotted land on sub-lease. Facilities like mother units will be
provided to vendor units of big industries if vendor units sell 75 percent of
their products to mother units. Stamp duty will be reimbursed on purchase of
closed, sick or acquired units for setting up defence manufacturing units.
Under the policy, 50 per cent subsidy will be given on
expenditure on power, water and road infrastructure to be created on
undeveloped land by defence equipments manufacturing units. Units making
permanent investment of Rs 500-crore will be exempted from entry tax and 2
years exemption from power tariff.
They will be given benefits under investment promotion
assistance scheme. Fifty per cent or maximum Rs 2-crore of expenditure on
transport of imported machinery from seaport to venue will be given.
Through the policy, 100 acre land will be allotted on
concessional rates to projects investing Rs 1000-crore or more. Road and power
will be developed and made available by government. Besides, 100 per cent
reimbursement will be made on stamp duty and registration fee on registry of
units to be set up in joint venture with Defence Ministry’s units.